Rotterdam, The Netherlands (29 April 2015) - IMCD N.V. (“IMCD” or “Company”), a leading distributor of speciality chemicals and food ingredients, today announces the first quarter 2015 results.
Highlights
Gross profit growth of 8% to EUR 79.1 million (+5% on a constant currency basis)
Operating EBITA increase of 9% to EUR 30.5 million (+5% on a constant currency basis)
Net result EUR 21.3 million before amortisation and non-recurring items (2014: EUR 7.5 million)
Cash EPS EUR 0.40
Acquisition of Kushalchand (India) on 2 April 2015
Piet van der Slikke, CEO, commented: “I am satisfied that we have been able to surpass the very strong first quarter of 2014 and that both our gross profit and EBITA further improved. Our activities in India weren strengthened by the acquisition of Kushalchand in April and we have excellent opportunities to further grow in this huge market.
Key figures
EUR million Jan. 1 - March 31 2015 Jan. 1 - March 31 2014 change change fx adj. change
Revenue 355.6 345.7 9.9 3 % -1%
Gross profit 79.1 73.0 6.0 8 % 5 %
Gross profit in % of revenue 22.2% 21.1% 1.1%
Operating EBITA¹ 30.5 28.0 2.4 9 % 5 %
Operating EBITA margin² 8.6% 8.1% 0.5%
Conversion margin³ 38.5% 38.4% 0.2%
Net Result before amortisation / non recurring items 21.3 7.5 13.8 184% 165%
Free cash flow⁴ 25.9 17.6 8.3 47%
Cash conversion margin⁵ 82.8% 61.3% 21.5%
Earnings per share (weighted) 0.32
Cash earnings per share (weighted)⁶ 0.40
Number of full time employees end of period 1,536 1,473 6 3 4 %
¹ Result from operating activities before amortization of intangibles and non-recurring items
² Operating EBITA in percentage of Revenue
³ Operating EBITA in percentage of Gross profit
⁴ Operating EBITDA plus/less changes in working capital less capital expenditures
⁵ Free cash flow in percentage of Operating EBITDA
⁶ Earnings before amortisation net of tax
Revenue
Revenue increased from EUR 345.7 million to EUR 355.6 million, an increase of 3%. On a constant currency
basis revenue decreased by 1%. Revenue was influenced by decisions to optimise the product portfolio.
Gross profit
Gross profit, a key performance indicator for IMCD, increased by 8% to EUR 79.1 million. On a constant
currency basis, gross profit increased by 5%. The gross profit margin increased to 22.2% from 21.1% in the first
quarter of 2014. Gross profit margins increased in Europe and Asia Pacific and were more or less stable in
Other Emerging Markets.
Operating EBITA
Operating EBITA increased by 9% to EUR 30.5 million. On a constant currency basis, EBITA increased by 5%.
The operating EBITA margin increased to 8.6%, compared to 8.1% in the first quarter of 2014. Operating EBITA
margins were higher in Europe and Asia Pacific and declined in Other Emerging Markets.
Cash flow and capital expenditure
Free cash flow was EUR 25.9 million compared to EUR 17.6 million in the first quarter of 2014. The high cash
generative nature of the business resulted in a cash conversion margin of 82.8%, driven by further EBITDA
growth, combined with relatively low working capital investments in the first quarter of 2015.
The investment in working capital (sum of inventories, trade and other receivables minus trade and other
payables) in the first quarter of 2015 was EUR 4.8 million compared to EUR 10.0 million in the first quarter of
2014.
Capital expenditure in the first quarter of 2015 was EUR 0.5 million compared to EUR 1.1 million in the same
period of 2014.
Net debt
Net debt was EUR 244.9 million on 31 March 2015, compared to EUR 266.6 million as per 31 December 2014.
The reduction in net debt is mainly a consequence of the strong cash flow generated in the first quarter of 2015.
As a result, the ratio net debt to last 12 months operating EBITDA was further reduced to 2.1 at the end of this
first quarter (31 December 2014: 2.4).
Developments by region
Europe EUR million Jan. 1 - March 31 2015 Jan. 1 - March 31 2014 change change fx adj.¹ change
Revenue 248.2 250.1 -1.9 -1% -2%
Gross profit 57.8 55.7 2.0 4 % 2 %
Gross profit in % of Revenue 23.3% 22.3% 1.0%
Operating EBITA 23.5 22.4 1.1 5 % 2 %
Operating EBITA in % of revenue 9.5% 9.0% 0.5%
In Europe growth was limited. Demand in key markets was not strong at the start of the year but gradually
improved in the quarter. Furthermore, revenue from time to time is influenced by timing differences in order
patterns. As a consequence, revenue declined slightly by 1%, and the gross profit margin increased by 1% to
23.3%, resulting in a gross profit growth of EUR 2.0 million. Operating EBITA increased by 5% to EUR 23.5
million (EUR 22.4 million in the first quarter of 2014) with an operating EBITA margin of 9.5% (9.0% in the first
quarter of 2014).
Asia Pacific
EUR million
Jan. 1 - March 31 2015 Jan. 1 - March 31 2014 change change fx adj. change
Revenue 76.8 68.6 8.2 12% 3 %
Gross profit 14.4 11.2 3.2 29% 18%
Gross profit in % of Revenue 18.8% 16.3% 2.5%
Operating EBITA 7.4 5.3 2.1 39% 28%
Operating EBITA in % of revenue 9.6% 7.7% 1.8%
Revenue in Asia Pacific grew by 12%, to EUR 76.8 million and by 3% on a constant currency basis. Growth was
mainly organic, with a small contribution of the acquisition of Danasia in September of 2014. Gross profit
increased by 29% to EUR 14.4 million with a gross profit margin of 18.8% (16.3% in the first quarter of 2014).
The operating EBITA increased by 39% to EUR 7.4 million and the operating EBITA margin rose from 7.7% to
9.6%. This was mainly caused by the alignment and further optimisation of the Asian businesses and stabilised market circumstances in Australia and New Zealand.
Other Emerging Markets
EUR million
Jan. 1 - March 31 2015 Jan. 1 - March 31 2014 change change fx adj. change
Revenue 30.6 27.0 3.6 13% 6 %
Gross profit 6.9 6.1 0.7 12% 5 %
Gross profit in % of Revenue 22.4% 22.6% -0.2%
Operating EBITA 2.1 2.4 -0.3 -11% -18%
Operating EBITA in % of revenue 7.0% 9.0% -2.0%
Other Emerging Markets representing operations in Turkey, South Africa and Brazil showed revenue growth of 13% to EUR 30.6 million (6% on a constant currency basis). Gross profit improved by 12% to EUR 6.9 million with a slightly lower gross profit margin of 22.4%. Operating EBITA declined by 11% to EUR 2.1 million (EUR 2.4 million in 2014). The operating EBITA margin declined from 9.9% in 2014 to 7.0% in 2015. This was mainly the result of less favorable market circumstances in Turkey and Brazil, negative currency rate developments and additional investments in Brazil to prepare for future growth.
EUR million
Jan. 1 - March 31 2015 Jan. 1 - March 31 2014 change change fx adj. change
Operating EBITA -2.6 -2.1 -0.4 -19% -14%
Holding companies relate to all non-operating companies, including the head office in Rotterdam and the regional office in Singapore. The increase in operating expenses in the first quarter of 2015 reflects the growth of IMCD and as a consequence the strengthening of the support functions both in Rotterdam and Singapore.
Outlook
IMCD operates in different, often fragmented market segments in multiple geographic regions, connecting many customers and suppliers across a very diverse product range. In general, results are impacted by macroeconomic conditions and developments in specific industries. Furthermore results can be influenced from period to period by, amongst others, the ability to maintain and expand commercial relationships, the ability to introduce new products and start new customer and supplier relations and the timing, scope and impact of acquisitions.
Based on Q1 achievements and the strong fundamentals of the business, IMCD expects continuing EBITA growth in 2015.
Financial calendar
2015
29 April 2015 Annual General Meeting
Dividend announcement
4 May 2015 Ex-dividend date
5 May 2015 Record date
7 May 2015 Payment date
14 August 2015 First half year results 2015
11 November 2015 Third quarter 2015 Trading Update
tijd 09.07
De Midcap 777,95 +2,74 +0,35% IMCD EUR 35.095 +1m28 vol. 7.775
IMCD 2015 Annual General Meeting resolutions
ROTTERDAM, The Netherlands (29 April, 2015) - The Annual General Meeting of IMCD N.V. (IMCD) held on 29 April 2015 approved all voting items on the agenda including the adoption of the financial statements for the financial year 2014 and the approval of the dividend proposal of EUR 0.20 per ordinary share. The dividend calendar is as follows:
4 May 2015
Ex-dividend date
5 May 2015
Record date
7 May 2015
Payment date
